State government spending in fiscal 2019 increased at the largest rate since the end of the Great Recession, according to the latest State Expenditure report from the National Association of State Budget Officers (NASBO).
Total state spending reached $2.1 trillion in fiscal 2019, rising from $2 trillion in fiscal 2018. Total state government spending rose 5.7 percent in fiscal 2019. The increased 2019 growth was slightly above the 33-year NASBO survey historical average of 5.6 percent (without adjusting for inflation).
Seven out of eight geographic regions reported an increase in total state spending in fiscal 2019, according to the report. Western states reported the largest increases; Southwestern states saw a slight decline.
Spending from states’ own funds (general funds and other state funds combined, excluding bonds) rose 5.9 percent in fiscal 2019, the highest annual growth rate since the last recession, NASBO found.
Much of the state spending increases were in transportation.